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Licensed NMLS #455896 · Odenton office · In-house underwriting through Bay Capital Mortgage
Conventional Home Loans in Maryland
John Shea, Mortgage Advisor | NMLS #455896
Bay Capital Mortgage Corporation | NMLS #39610
Odenton, Maryland | Serving buyers and homeowners across Marylan
I’m John Shea, a mortgage advisor based in Odenton. I help Maryland homebuyers and homeowners compare Conventional financing with FHA, VA, and other options. Before you choose a loan, I’ll walk through the full payment, the cash needed to close, and the tradeoffs that matter for your plans.
Conventional financing can be a good fit for many first-time buyers, move-up buyers, and homeowners considering a refinance. Some eligible programs allow a down payment as low as 3%, and many Conventional loans have a path to cancel borrower-paid PMI when the loan meets the applicable requirements. The details depend on your credit, income, assets, property, and loan program.
I work directly with you. Processing, underwriting, closing, and funding are handled through Bay Capital Mortgage. My goal is to give you clear advice so you can make a sound decision, not push you into a program before we understand the number
Free, no obligation. Talk through your plans and questions with me directly.
Start a secure application. I’ll explain what information and credit review are needed as we get started.
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Bay Capital Mortgage
2020
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2026
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Prefer to talk it through? Schedule a quick consultation and we’ll walk you through your conventional loan options step by step.
20 years
Serving Maryland homebuyers since 2006
NMLS #455896
and Bay Capital Mortgage
NMLS #39610
In-house
Processing, underwriting, closing, and funding through Bay Capital Mortgage
MMP approved
Maryland Mortgage Program approved lender
Conventional loans in plain language
A Conventional mortgage is not insured by the Federal Housing Administration or guaranteed by the Department of Veterans Affairs. Many Conventional loans follow guidelines set by Fannie Mae or Freddie Mac, while other Conventional products have different requirements. The word “Conventional” does not mean every loan has the same minimum down payment, credit standard, or terms.
Some eligible programs allow 3% down. If you put less than 20% down, private mortgage insurance (PMI) is generally part of the cost, although the exact structure can vary. For many loans covered by federal PMI cancellation rules, borrowers can request cancellation at the required equity point if they meet the conditions. A low down payment also does not mean no cash to close: settlement costs, prepaid taxes and insurance, and other costs may still apply.
Pre-qualification is not a commitment to lend. All loan options depend on the complete file and current program requirements.
When Conventional financing may fit
Conventional financing may be worth comparing if you:
Want to compare different down payment amounts and how each changes your payment, PMI, and cash reserves.
Have credit, income, assets, and property details that fit an available Conventional program.
Want to understand whether and when borrower-paid PMI could be canceled on the loan you are considering.
Are buying a primary residence, or asking about a second home or investment property that meets program rules.
Are selling one home while buying another, or considering a refinance.
The right loan is the one that works for your full situation. FHA may fit some buyers better. If you are eligible for VA financing, include that benefit in the first comparison. I’ll help you look at the actual payment and cash to close rather than decide based on a program label or advertised down payment.
What To Compare Before You Choose
✔ Down payment and total cash to close
Some conventional programs allow eligible buyers to put 3% down. Other programs or circumstances may require more. Eligibility can depend on factors such as occupancy, property type, loan amount, borrower profile, and program rules.
The down payment is only one part of the money you need. Plan for closing costs, prepaid taxes and homeowners insurance, appraisal and title charges, and any required reserves. Seller contributions, gift funds, or assistance may be available in some transactions, subject to the program’s limits and documentation rules. I’ll estimate the full cash to close for the home you are considering.
✔ Monthly payment and PMI
For a Maryland home, compare principal and interest, property taxes, homeowners insurance, PMI if applicable, and HOA or condominium fees. Taxes and HOA costs can change the monthly number substantially from one community to another.
PMI is generally required on a conventional loan when the down payment is below 20%. It protects the lender, not the borrower. The cost depends on the loan and borrower details. On many covered loans, you can request PMI cancellation when your scheduled balance reaches 80% of the home’s original value if the applicable requirements are met. Automatic termination generally occurs at 78% of original value when the borrower is current, subject to federal law. Your servicer applies the rules after closing. Do not assume that market appreciation by itself will remove PMI; ask how your specific loan handles cancellation.
✔ Fixed or adjustable rate
Fixed-rate and adjustable-rate options may be available depending on the program. A fixed rate keeps principal and interest steady for the loan term. An adjustable-rate loan can change according to its terms after any initial fixed period. We’ll review how long you expect to own the home, the adjustment terms, and whether the payment risk fits your plans.
✔ Property and occupancy
Conventional financing may be available for primary residences, second homes, and investment properties, but requirements differ. Occupancy, property type, down payment, credit, and reserves all matter. Jumbo financing may also be available through the team; loan size, property, and current program requirements need to be reviewed for each transaction.
Conventional, FHA, or VA?
There is no one loan that is best for every buyer. I compare the same home price and include:
Down Payment
Interest rate
Mortgage insurance
Taxes
Homeowners insurance
HOA costs
Cash to close
Down Payment
Interest rate
Mortgage insurance
Taxes
Homeowners insurance
HOA costs
Cash to close
Conventional
May offer a useful PMI cancellation path and a range of down payment and property options for eligible borrowers.
FHA
May be worth considering when FHA eligibility or underwriting flexibility is important. FHA mortgage insurance follows different rules from conventional PMI.
Homeowners refinancing
If you are eligible, let’s include VA early. VA has its own eligibility, entitlement, occupancy, and funding-fee rules. It does not have monthly mortgage insurance, though other loan costs may apply.
See the separate FHA Home Loans and VA Home Loans pages. The best fit depends on your actual file and plans.
Conventional loans for Maryland buyers and homeowners
First-time buyers
Some first-time buyers may qualify for a Conventional program with a lower down payment. These programs can have additional income, occupancy, homebuyer education, or other requirements.
If you are considering the Maryland Mortgage Program, I’ll check whether the current assistance option works with the Conventional program and your situation.
Move-up buyers
If you are selling one home and buying another, we should plan the sale and purchase together. Proceeds, contract dates, and qualification for both homes can affect the new loan. I’ll help map the timing and identify what underwriting will need before you make an offer.
For buyers in Crofton, Gambrills, Millersville, Severn, and nearby communities, I’ll include local property taxes, HOA costs, and expected sale proceeds in the comparison.
Military and civilian buyers near Fort Meade
Conventional financing is one option for buyers near Fort Meade, but this page serves Maryland buyers statewide. If you are eligible for VA financing, compare both early. PCS timing, entitlement, down payment, funding fee, and the property can all affect the decision.
See the Fort Meade Homebuyer Playbook for location-specific planning.
Homeowners considering a refinance
A conventional refinance may be worth reviewing for a rate-and-term or cash-out goal if the new terms make sense. Compare the payment, closing costs, break-even point, and any change in mortgage insurance.
A refinance is not guaranteed and depends on qualification and the property. Start with the Maryland Refinance Guide.
Step by step
How the process works
1
Talk through your plans
Tell me where you are looking, your timing, and whether you are buying, selling, or refinancing.
2
Review the full picture
Income, assets, debts, credit, property type, occupancy, and loan amount all matter.
3
Compare the numbers
We’ll look at estimated payment and cash to close, including taxes, insurance, PMI, and HOA costs when applicable.
4
Choose a path
I’ll explain the program requirements and documents before you make a decision.
5
Move through the loan process
The team coordinates processing, underwriting, closing, and funding through Bay Capital Mortgage. Appraisal, title, contract conditions, and other parties can affect timing. Closing dates are not guaranteed.
Conventional loan questions
What credit score do I need for a conventional loan?
There is no single score that determines every Conventional loan. Program and lender requirements vary, and credit is reviewed with income, assets, debts, property, and other factors. I’ll review the full file and explain which options may fit rather than rely on a score alone.
Can I put 3% down on a Maryland home?
Some Conventional programs allow eligible buyers to put 3% down. Eligibility depends on the program and transaction, and you still need to plan for closing costs, prepaid expenses, and any required reserves.
When can I remove PMI?
For many loans covered by federal law, you can request PMI cancellation when the scheduled balance reaches 80% of the home’s original value, if you meet the applicable conditions. Automatic termination generally applies at 78% of original value when you are current. Your servicer handles the request and applies the rules for your loan. Check your loan documents and servicer requirements.
Is Conventional better than FHA?
Not automatically. Compare the total payment, cash to close, mortgage insurance, program requirements, and how long you expect to keep the loan. FHA and conventional mortgage insurance work differently, so I’ll show the costs for the same home price and down payment assumptions.
Should a Fort Meade military buyer consider Conventional instead of VA?
You can compare both, but if you are VA-eligible, include VA in the first review. Entitlement, funding fee, down payment, occupancy, property, and your plans all matter. The right answer is specific to your file.
Can I use Conventional financing for a second home or investment property?
Some programs allow second-home or investment-property financing, subject to occupancy, property, down payment, reserves, and underwriting requirements. Jumbo options may also be available through the team. I’ll confirm the current scope and requirements for the property you have in mind.
Can I use gift funds or seller contributions?
Possibly. Program rules set the eligible sources, limits, and documentation requirements. Tell me about the funds early so we can make sure the cash-to-close plan and offer are structured correctly.
How long does a Conventional loan take to close?
Timing varies by transaction. A complete application, appraisal, title work, condominium documents, sale of another home, and contract conditions can all affect the schedule. The team will set expectations based on your file, but no closing date is guaranteed.
Where can I verify licensing?
John Shea is NMLS #455896 and Bay Capital Mortgage Corporation is NMLS #39610. You can verify licensing through NMLS Consumer Access. Office: 1416 Annapolis Road, Suite B, Odenton, MD 21113.
A few Conventional loan mistakes to avoid
Choosing from an advertised rate alone.
A rate does not show your full Maryland payment or cash needed at closing. Compare taxes, insurance, PMI, fees, and the assumptions behind the quote.
Leaving PMI out of the budget.
If your down payment is below 20%, include PMI unless your specific loan structure says otherwise.
Assuming 3% down means little cash is needed.
Settlement costs, prepaid items, and reserves may apply. Ask for a full cash-to-close estimate.
Assuming PMI will disappear as soon as the home value rises.
Cancellation depends on the loan rules, equity calculation, payment history, and servicer requirements.
Skipping the VA comparison when eligible.
Military buyers should compare VA and conventional early, using their own entitlement and transaction details.
Making an offer before coordinating a home sale.
If the purchase depends on selling another home, map the contract dates, proceeds, and qualification timing first.
Maryland Communities I Serve
I work with homebuyers and homeowners across Maryland, including Odenton, Severn, Crofton, Millersville, Gambrills, Glen Burnie, Pasadena, Linthicum, Hanover, and nearby communities. See all Maryland service areas.
You can also visit the Home Loans page, use the Mortgage Calculator, read our Reviews, or explore the Maryland Refinance Guide.
Our Service Areas
Annapolis
Bowie
Laurel
Columbia
Ellicott City
Hanover
Elkridge
Let’s compare your Conventional options
If you’re buying or refinancing in Maryland, I can help you compare the payment, cash to close, and longer-term costs of Conventional financing with other options. We’ll look at your goals and the numbers before deciding on a path.
Disclosures
John Shea, NMLS #455896. Bay Capital Mortgage Corporation, NMLS #39610. 1416 Annapolis Road, Suite B, Odenton, MD 21113. Equal Housing Lender. Equal Housing Opportunity. All loans are subject to credit approval, program, property, occupancy, and underwriting requirements. Rates and program terms are subject to change. Pre-qualification is not a commitment to lend. This is not an offer to extend credit. Verify licensing through NMLS Consumer Access.
